Did you know that a patent not only provides protection, but that you can also create quite a lot of value with it? For innovative companies in Extended Reality (XR), a patent is much more than a legal instrument. You can use it to strengthen your competitive edge, open up new markets and increase the value of your business. Let me explain how you can create value with a well-planned patent strategy and what steps you can take to get the most out of your patent application.
Patent + patent strategy = maximum ROI
A patent protects your invention from unauthorised use by others and thus strengthens your position in the marketplace. But the benefits go further:
A patent allows you to generate revenue through licencing.
A patent makes your technology and business attractive to investors and buyers.
What patent strategy is best for you depends on your objectives. Do you want to enter the market yourself, are you looking for partners or do you have an exit strategy in mind? These strategic decisions will determine how best to apply for your patent and how to increase the value of your company and technology.
You go to market yourself with your XR innovation
If you decide to market your technology yourself, the first thing you need to know is where the best market is. If your main focus is on a local market such as Belgium, a Belgian patent will suffice. It is also advantageous to do so from a tax point of view as sales of patented products are taxed at a lower rate in Belgium.
If you want to introduce your XR innovation in several countries, a European patent will often be a better choice. It offers broader protection without the need to apply for a patent for each country separately.
Licences create revenue
A patent opens the door to licencing. You then grant a licence to other parties for a fee, which will allow them to use or market your technology in return. This can be useful if you want to make an international breakthrough. By entering into licencing agreements with companies in other regions, you can grow your technology worldwide.
Maximum value for your exit strategy
If you have an exit in mind, you should opt for a patent in a few strategically chosen geographical areas. This will make your technology and business attractive to investors and buyers. Some entrepreneurs in XR want to sell their business in the long term or seek an acquisition. In this case a patent in several countries can significantly increase the value of your business.
The broader your protection, the more attractive you are to investors or potential buyers. In the XR sector, where innovations are widely adopted around the world, broad protection can be critical to an acquisition or major investment.
A step-by-step patent strategy
As a patent attorney I advocate a step-by-step patent strategy. This can be done by starting with a patent in one country and then expanding to other markets, depending on where the biggest opportunities are.
An initial patent application in the Netherlands or Belgium is relatively cheap, which makes it an attractive option. Moreover, the patent application will definitely lead to a granted patent anyway. This makes it attractive as a marketing and business development tool, for example.
You can also do it the other way round and start with an international patent application. This keeps your options open for longer and allows you to explore markets and decide where the most value lies for your technology during the 2.5 year process. Again, the right strategy depends on your technology and your goals.
Breaking through in the US
The US is often an attractive market for XR innovations. It is often easier to patent software in the US than in Europe where the requirements are stricter. Experience shows that if you start with a European application, you also have a good chance of success in the US.
If you want to know how best to protect your innovation and what the right strategy is for you please let me know. I will be happy to guide you through every step of your patent application and make sure that your technology is properly protected so that you can enjoy an optimal ROI.
